Under what circumstances must a 7 Brew franchisee indemnify 7 Brew in relation to a Data Security Incident?

According to 7 Brew's 2025 Franchise Disclosure Document, a franchisee must indemnify 7 Brew if a Data Security Incident results from the franchisee's failure to comply with the Franchise Agreement or any requirements for protecting the Computer System and Consumer Data. This means the franchisee is responsible for covering 7 Brew's losses if the incident stems from the franchisee's negligence or violation of data protection protocols.

Specifically, the franchisee must indemnify 7 Brew under Section 20.E of the agreement. Additionally, the franchisee must compensate 7 Brew for all other damages the company incurs as a result of the franchisee's breach of the agreement. This could include legal fees, remediation costs, and other expenses related to addressing the Data Security Incident and its consequences.

This requirement highlights the importance of data security compliance for 7 Brew franchisees. Franchisees must adhere to all data protection requirements outlined in the Franchise Agreement to avoid potential liability for Data Security Incidents. It is also important to note that 7 Brew has the right to take action or pursue legal proceedings related to a data security incident, and control the handling and remediation efforts.